The VRS Needs a Bailout

Virginia's public employee retirement system may need a bailout, after its assets fall by $12 billion:

Because of the asset loss, the state will probably have to pony up more money in the next fiscal year to cover employer contribution rates, said Robert Schultze, VRS director. He estimated the budget for fiscal 2010-2012 would need about $63 million a year in general fund money to cover state employees and $139 million a year to cover teachers.

I wonder where the money will come from, considering the state is already on line to chop around $300 million in spending.

One revenue option is the state's new payday loan enterprise, also aimed at state employees.

Does anyone else get a sense of circular motion here? Cut employees...offer loans to the rest...then shore-up the pension program. Repeat as needed.